Crown Holdings (CCK), a supplier of packaging products, has reported a 20.30 percent increase in profit for the quarter ended Jun. 30, 2014. The company earned $106 million or $0.76 a share in the second-quarter compared with $133 million or $0.93 a share a year ago. Analysts on average had predicted net income of $0.99 a share.
Revenue during the second-quarter rose 7.20 percent to $2,383 million from $2,223 million in the last year period.
Gross margin contracted by 109 basis points over the last year period to 15.78 percent.
Commenting on the quarter, John W Conway, chairman and chief executive officer, stated, ''We continued our strong performance during the second quarter with increases in sales, segment income and earnings per share before certain items. The acquisition of Mivisa closed on April 23rd, and we are pleased that this well-performing business is now an integral part of our strategically important European Food segment. Underlying food can demand has begun to improve in Europe and remains stable in North America.''
Cash Flow
Crown Holdings has spent $117 million cash to meet operating activities during the first half, as against cash outgo of $251 million in the last year period.
The company has spent $854 million cash to meet investing activities during the first half, as against cash outgo of $116 million in the last year period. It has made net capital expenditure of $149 million during the first half, which was higher by 20.16 percent or $25 million, from a year ago.
The company has generated cash of $528 million from financing activities during the first half, up 112.05 percent or $279 million, when compared with the last year period. It has borrowed net of $682 million through debt during the first half. It has spent net of $2 million on repurchase of common stocks.
The company's cash dividend payment decreased 2.86 percent or $1 million to $34 million.
As on Jun. 30, 2014, the company's cash balance stood at $244 million, up 7.49 percent or $17 million from Jun. 30, 2013.
Working Capital
Crown Holdings has witnessed an increase in the working capital over the last one year. The company's working capital stood at $638 million as at Jun. 30, 2014, up $97 million or 17.93 percent from $541 million on Jun. 30, 2013. It registered an increase in current ratio to 1.22 as at Jun. 30, 2014 from 1.21 on Jun. 30, 2013.
Debt Position
Crown Holdings has witnessed an increase in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $5,492 million, up 33.11 percent or $1,366 million, from Jun. 30, 2013.
The company's total debt was 55.50 percent of total assets as on Jun. 30, 2014, compared with 52.43 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 13.33 on Jun. 30, 2014 compared with 33 on Jun. 30, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has declined to 2.95 from 3.92 in the same period last year.
Shares of Crown Holdings gained 18 cents or 0.35 percent to close at $51.47 on Monday.
